Why should you work with a Portfolio Manager?

There are many advantages to working with a Portfolio Manager as opposed to a retail investment manager. Portfolio Managers have a fiduciary duty to act with care, honesty and good faith in the best interest of their clients. Therefore, all investment decisions must be independent, preventing conflicts of interest. This results in a higher level of trust between the Portfolio Manager and their client.

All Portfolio Managers, and the firms they work for, must be registered. In order to become registered, they must meet strict financial reporting, capital and insurance requirements and the individual Portfolio Managers are required to have a high level of education and experience in the investment industry.

Portfolio Managers charge a fee based on a percentage of the investments they manage. This fee is transparent and typically less than retail management and distribution costs. The fee is listed on client statements and usually goes down as a percentage of your portfolio as your assets grow. The fees are not a commission that is based on the volume of buying or selling investments and can be significantly lower than standard mutual fund fees.

What is a Portfolio Manager? 

Portfolio managers can be a firm or a person who manages investment portfolios and ultimately makes final investment decisions for pensions, endowments, foundations and private clients. One way Portfolio Managers set themselves apart from “main street” retail investment managers is by often charging lower management fees. This is possible because they typically manage larger amounts of money for a smaller client base.

How can a Portfolio Manager help?

Upon beginning to work with a Portfolio Manager, a written agreement (usually known as an Investment Policy Statement or IPS) will be established that outlines your specific investment objectives and risk tolerance. The IPS is the basis on how your Portfolio Manager will determine an appropriate mix of investments and make modifications to your portfolio. With your IPS, you typically give authority to your Portfolio Manager to make investment decisions without getting prior approval from you for each transaction (called ‘discretionary management’). It is therefore important to meet with your Portfolio Manager at least annually to ensure that your IPS is up-to-date and accurately reflects your needs.

What is Loxley’s Involvement?
Loxley has developed relationships with numerous Portfolio Managers across Canada. Not all Portfolio Managers are alike, many have unique or specific strategies. Loxley refers clients to Portfolio Managers that we think offer the best service. We work closely with our clients to monitor the Portfolio Manager’s performance and provide ongoing guidance to our clients in regards to their “Traditional” investments. This allows our clients to have one “Point Man” for all their financial services eliminating confusion and promoting a trusting, long term relationship. We think that Portfolio Managers provide the best ‘Traditional’ investment service to our clients. Contact one of our Alternative Investment Advisors to learn more.

“ Loxley Financial Inc. and Newport Private Wealth Inc. have entered into a Referral Agreement. Under the terms of this Agreement, Loxley Financial Inc. makes introductions to Newport for its discretionary investment management services. When you become a client of Newport, a referral fee is paid to Loxley Financial Inc. from the discretionary investment management fees it earns.”